Value Analysis

What exactly is value analysis?

As the term explains it is basically just finding out what the value of the product is? The product which might have no value to you at all might be priceless to another user. To all you have to do as a manufacturer of a product is to find all the potential uses of the product and the by product that is manufactured by you. Through this way you also have a thorough understanding of the product and also a deep insight of how you can use the product to gain maximum benefit of the product.

What does the value analyst do?

• The job of the value analyst is to identify the true potential of the product.
• Know about the true value of the by products obtained.
• Ways by which the durability and usages of the product can be increased.
• To find out whether alternate products can be used, and can still produce the desired output?

Basic objectives of value analysis:

The basic reason as to why the process of value analysis is done is to

• Maximize the usage of the product
• And minimize the waste of the product

Benefits of using value analysis:

• The true nature of the product and be fully understood
• The product and be used to the maximum extent to get the desired quality results.
• Wastage can be reduced to a greater extent.
• The organization can branch out by producing various products and by products.
• Total value for the money invested can be gained back within a very short span of time.

Some of the drawbacks of value analysis:

• Defining the value, value by itself is a general term and can have different meanings based on situations and programmers.
• Deciding on the value based on the present and future environment cannot be very accurate.

The value analysis is not only applicable fro products it can be equally applicable for process and services. It actually helps you to deeply understand the subject and also gives you understanding about the ways you can make the product work for your benefit.

Questions:

• What are the other factors that you will have to take into consideration when doing value analysis?
• Define value analysis?